NEW DELHI: The
pharma
and healthcare sector witnessed a significant 15%
decline
in
volume
in the first quarter this year, with 47 deals amounting to $ 409 million, as against the previous quarter, and an 82% decrease in value, compared to $2.3 billion in Q4 2023. The average deal size this quarter declined by 79% at $8.7 million year-on-year, the
Pharma and Healthcare Q1 Dealtracker
report from Grant Thornton Bharat said.
In Q1, there was a significant decrease in values primarily due to absence of big-ticket transactions, with only one high-value deal (over $100 million) recorded, contrasting with Q4 2023, which saw six such deals.
Medical devices and wellness space attracted investors’ attention, while the health tech segment continued to garner higher volumes in deals.
Investor interest will continue in biosimilar and API segments in the life sciences sector, and we may see consolidation in the hospitals segment, it added.
Mergers and acquisitions (M&A) activity also experienced a significant decline both in volume and value compared to the previous quarter. Volumes decreased by 54%, with only 11 deals in
Q1
2024, compared to 24 deals in Q4 2023.
The top two M&A deals were Eric Lifesciences’ acquisition of
Biocon
Biologics valued at $150 million, while the other was Eris Lifesciences purchase of a controlling stake in Swiss Parenterals at $77 million.